Made in Germany speaks with Stefan Kooths, director of the forecasting center at the Kiel Institute for the World Economy about economic conditions and consumer behavior in Germany.
German consumers have been found to be spending a lot more than before as their willingness to buy goods and services has increased due to a number of factors. Ultra-low interest rates keep them from saving.
German gross domestic product (GDP) rose by 0.4 percent in the second quarter, compared to the previous quarter. Low oil prices and a weak euro boosted exporters, fueling growth.
The International Energy Agency (IEA) says overcapacity means another year of cheap oil. But it warns low oil prices are leading to underinvestment in developing new capacity, which may cause a spike in prices by 2021.
British energy giant BP recorded multi-billion dollar losses in the second quarter due to payments linked to the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. Low oil prices also weighed on results.
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